Utility Tariffs: PURC justifies increment of Electricity and Water

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The Executive Secretary of the Public Utilities Regulatory Commission (PURC), Mami Dufie Ofori, has justified the 11.17 percent increment on electricity and 8.01 percent water tariffs which are expected to take effect from July 1, 2019.

According to her, the increment is expected to cover administrative, Operations and maintenance costs which would result in the provision of quality service to customers.

She announced this at a press conference organized by the commission to explain the commission’s decision for approving major increment in tariffs in the country.

Dufie Ofori explained that the basis for the  increment in electricity and water tariffs were due to proposals the commission received from key stakeholders for the upward adjustment to enable the service providers supply quality and adequate tariffs to customers.

“Due to compliance by GWCL to the Commission’s Regulatory Number GWCL012018 dated 6th September, 2018, the commission has restored water tariffs to 15th July, 2018 rates which is the basis for the increase,” She stated.

She said the Commission took several issues into consideration including the ECG/PSP process, projected inflation rate, the Cedi/Dollar rate, cost of operations of Utility companies and projected electricity and water demand for 2019 to 2020 tariffs period.

The Commission according to her also held extensive stakeholder consultations in accordance with laid down laws and in compliance with the commission’s decision-making on tariffs.

She said, the commission has eliminated the electricity Maximum Demand Charge on industrial customers using the Special Load Tariffs (SLT) to enhance competitiveness in the sector and to enable such customers experience some savings in overall electricity bills.

The Chairman of the technical committee of PURC, Ishmael Edjekumhene, disclosed that the reduction of tariffs which happened last year, does not necessarily mean, there would not be any adjustment again unless the economic indicators that determines the adjustment of prices remains constant and unchangeable.

Source: Eric Nii Sackey

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